Diageo reported a modest two percent growth in net sales in Britain for the half year ended 31 December 2019.
Beer brand Guinness with a sales increase of six percent was the major driver of growth, ably supported by good performances from Baileys and Captain Morgan.
“Guinness Draught grew in the on-trade and benefited from digital activations targeting specific after-work occasions. One in every 10 pints served in London is now a Guinness,” said Dayalan Nayager, Managing Director, Diageo Great Britain, Ireland and France.
However the overall growth was partly offset by a decline in Gordon’s gin, he added.
Globally, the business posted a 4.2 percent increase in net sales, and 0.5 percent rise in reported operating profit.
Both sales and profit were driven by organic growth, but the profit was impacted by unfavourable exchange, exceptional operating items and acquisitions and disposals, the company said in interim results.
“These results reflect the changes we are making in the business to drive shifts in our culture. They are in line with our current mid-term guidance and have been delivered in the face of increased levels of volatility in India, Latin America and Caribbean and Travel Retail,” said Ivan Menezes, chief executive.
The company said it expects organic net sales growth for the full year to be towards the lower end of their 4 to 6 percent mid-term guidance range.
“There is ongoing uncertainty in the global trade environment and we would not be immune from further policy changes,” Menezes added.
To use this website you must be aged 18 years or over. Please verify your age before entering the site.
